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Egyptian private equity firm Citadel Capital on Monday posted a second-quarter loss of $4.2m citing a lack of exits and just days after the company completed a $175.6m rights issue.

The Cairo-based firm made a net profit of $50,000 in the same quarter a year ago.

Citadel last week said shareholders had fully subscribed to its 175.6m capital increase, adding about EGP718m of fresh cash to its balance sheet. The firm also warned of a turbulent 12-18 months ahead amid challenging macroeconomic conditions.

"The macro picture in Egypt is today essentially as we had forecast: we see ongoing macroeconomic challenges continuing to prompt foreign investors to sit on the sidelines waiting for visibility, a reality we expect will continue to play out over the coming 12-18 months," the company's chairman and founder Ahmed Heikal said in a statement.

In addition to the rights issue, Heikal added Citadel is also in the process of securing a $150m long-term financing facility.

Citadel's assets under management rose 8.1% to $4.1bn.

"In sum, our balance sheet is strong with fresh cash leaving us ideally situated to grow our portfolio, weather any economic challenges in 2012-13, and prepare for transformative exits in the years ahead as we chart a new future for Citadel," Heikal said.